EURUSD extends the pullback from local lows registered around 1.1250 on Friday. The pair is back above the 1.13 figure but the euro is yet to confirm the recent recovery on a daily closing basis. The current ascent is capped at 1.1340, so as long as the common currency stays below this level, downside risks keep prevailing. The daily RSI is pointing slightly upwards but the bias is too modest to bet on further gains in the short term. On the weekly charts, EURUSD is changing hands just at the 200-SMA. A daily close relative to this level will define the further direction in the pair.
GBPUSD remains capped by the 200-DMA representing a strong resistance area for three months already. It looks like the pair is not ready for a decisive break above this barrier that arrives marginally below the 1.27 handle. The technical picture on the weekly charts highlights a limited nature of the recent ascent, with the three moving averages acting as resistance levels. On the downside, the immediate support comes around 1.2560. Once below this level, downside risks will reemerge. Furthermore, the cable is getting below the 100-SMA on the hourly timeframes, confirming the strengthening bearish momentum in the immediate term.
USDJPY recouped Friday’s losses and regained the 107.00 figure. The local recovery was capped by the 20-DMA that acted as support on many occasions in the past. So, this level could prevent the greenback from bullish extension and trigger another retreat from the current levels in the short term. Furthermore, the prices are struggling at the 100-SMA on the four-hour timeframes, suggesting the upside potential in the dollar is limited at this stage. On the other hand, the RSI is pointing upwards on the same charts, so the pair could make another bullish attempt at the mentioned moving average by the end of the day.
The cross bounced strongly from the 50-DMA to start the week. As a result, the euro climbed back to the 0.90 barrier that capped the local rally. Once above this level, the pair will need to make a decisive break above last week’s highs around 0.9070 in order to see a more upbeat technical picture on the weekly timeframes. In the short term, the common currency needs to preserve the current upside impetus and refrain from another sell-off so as to confirm the recent recovery. Otherwise, the mentioned 50-DMA could turn into resistance for the first time in two months.
The Kiwi is little changed on Monday, extending its consolidation marginally below late-January highs registered around 0.66 last week. The fact that the pair refrains from a downside correction and holds above the 0.6550 intermediate support may signal its readiness to resume the ascent and challenge fresh multi-month highs after a brief pause. On the weekly timeframes, the technical picture looks bullish as long as the prices stay above the 50-SMA. Besides, there is another significant support in the form of the 100-SMA that arrives marginally above the 0.65 figure.